now here in california, amazon is building two giant warehouses. including this one near los angeles. it is a million square feet, and for the old-fashioned retailers, it is another reason to worry. why? because amazon's goal is to get items to customers faster and to be able to offer same day delivery. that's right. you can avoid stores if you want, and have a package delivered to your house in a matter of hours. a win for consumers, but tough for local retailers. >> if amazon creates distribution centers, and facilities on their turf locally, that takes away the one advantage we see retailers have left to compete against amazon. so it is a big deal. >> reporter: internet analyst colin sebastian says that means retailers need to up their game. >> retailers need to take a lesson from amazon. they need to focus on the consumer experience. they need to become more sophisticated both offline and online. >> reporter: those who want a lesson on how to thrive could learn from books inc. >> we had almost everything that came down the pike that could flatt